Fatty acid esters are ester produce via the reaction between alcohol and fatty acid. They are widely used across a wide range of applications due to their lubricating, resistance to oxidation, and solvency properties. Fatty acid esters are derived from vegetable oils and animal tallow.
Statistics:
The global Fatty Acid Ester Market was accounted for US$ 2,139.5 Mn in terms of value in 2019 and is expected to grow at CAGR 4.1% during the forecast period (2020-2027).
Drivers:
High demand for fatty acid esters from cosmetic and personal care products is propelling the market growth. These esters are used as emollients and thickeners in various personal care products. Their emulsification and surface adhesion properties make them suitable for cosmetic and personal care applications. Thus, the high demand for fatty acid esters from cosmetic and personal care products is augmenting the market growth of the fatty acid esters.
Increasing use of fatty acid esters in the pharmaceutical industry is augmenting the market growth. It is used in the formulation for treating the gastrointestinal and other diseases. The rise in the geriatric population is creating demand for healthcare services. Moreover, increase in the prevalence of chronic disease around the globe is another major factor in creating healthcare needs. Hence, growing use of fatty acid esters from pharmaceutical industry will favor the market growth.
Figure 1. Global Fatty Acid Esters Market, Revenue Share (%), By Region, 2019
Statistics:
North America region dominated the global fatty acid esters market in 2019, accounting for 41.6% share in terms of value, followed by Asia Pacific and Europe, respectively
Market Restraints
Increasing demand for synthetic lubricants due to cost-effectiveness is expected to hamper the demand for fatty acid esters based lubricants. This factor is projected to restrict the market growth over the forecast period.
Changing weather conditions has impacted the overall production of fatty acid esters. This is leading to a gap in demand and supply of the fatty acid esters, thereby inhibiting the market growth in the near future.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 2,139.5 Mn |
| Historical Data for: | 2017 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 4.1% | 2027 Value Projection: | US$ 2,139.5 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Cargill Incorporated, E.I du Pont Nemours and Company (DuPont), Estelle Chemicals Pvt. Ltd., Evonik Industries, Faci Asia Pacific Pte Ltd., Fine Organic, KLK Oleo, Oleon NV, Procter & Gamble (P&G) Chemicals, The Seydel Companies, Inc., World Chem Industries. |
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| Restraints & Challenges: |
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Market Opportunities
The growing popularity of natural esters from various end-user industries is expected to serve major growth opportunities in the near future. Pharmaceutical industry is witnessing a high demand for natural esters due to rising research in the field of nutrition sector. Increasing awareness regarding the benefits of natural esters among the end-user is further projected to foster the market growth of the fatty acid esters in the near future.
Rising demand for surfactant and detergent due to growing hygiene awareness among consumers is projected to offer profitable opportunities in the near future. Growing environmental concern is driving demand for fatty acid esters in surfactant and detergent as they offer effective washing and also promote environmental sustainability. Hence, the growing demand for surfactant and detergent is projected to foster market growth over the forecast period.
Figure 2. Global Fatty Acid Ester Market – Opportunity Analysis
Market Trends/Key Takeaways
Increasing demand for natural ingredients due to the growing trend of consuming natural and organic products is projected to escalate the market growth. This is attributed to the growing social media influence and changing consumer perception regarding the natural ingredient in food products and personal care products.
A growing sense of fashion among consumers is driving demand for cosmetic products. Fatty acid esters plays important role as emollient and thickener in cosmetic products. Increasing disposable income of the consumer coupled with the improving lifestyle is further fueling the market growth. Moreover, an increasing number of working women coupled with the growing demand for male grooming products is again projected to foster the market growth.
Figure 3. Global Fatty Acid Esters Market, Revenue Share (%), By Application in 2019
The food segment dominated the global fatty acid esters market in 2019, accounting for 33% share in terms of value, followed by others and surfactants segment respectively
Global Fatty Acids Esters Market - Impact of Coronavirus (Covid-19) Pandemic
The novel Coronavirus (COVID-19) has impacted almost all the industries globally including personal care products market. Rising demand for personal care products owing to rising health and hygiene awareness supports the growth of the fatty acid ester market globally.
Figure 4. Global Fatty Acid Esters Market, Value Chain Analysis
Competitive Section:
Company Names
The Global Fatty Acid Ester Market is accounted for US$ 2,139.5 Mn in terms of value by the end of 2019. Fatty acid esters is produced via the reaction between alcohol and fatty acid. It is derived from vegetable oils and animal tallow.
Market Dynamics
Increasing use of fatty acid ester in personal care products such as shampoos, shower gel, conditioners, and cosmetic products such as lipsticks and blush is expected to increase the demand for the market over the forecast period. Moreover, strong demand for fatty acid esters from the food &beverage industry is further expected to increase market growth.
Increasing awareness regarding the benefits of natural esters among the end-user is projected to foster the market growth of the fatty acid esters in the near future. Moreover, growing consumer preference towards natural ingredients is anticipated to boost product demand.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective
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